A Look at How Virtualization Is Setting Business Free from Physical Constraints

Instead of trying to determine whether or not virtualization is a good general business practice, you need to ask yourself one simple question: Does it make sense for my business?

The floodgates have officially opened. Businesses that were once reluctant to invest in virtualization are now willing participants, looking for any opportunity to reduce their dependence on physical assets and environments.

But is it worth the cost? This is a question that many businesses find themselves wondering and the answer isn't always clear.

Four Trends in Virtualization For the purposes of this article, the term virtualization will be used to describe any activity that involves digitizing processes that were otherwise physical and/or manual in nature. In other words, virtualization is the process of moving tasks, behavior, and data online.

With that being said, let's take a look at four of the biggest trends in virtualization.

1. Server Virtualization When most people discuss virtualization, they're referring to server virtualization. Server virtualization is the act of simplifying and consolidating servers to allow for a safer and more efficient IT environment.

Most large businesses have a number of different computer networks and servers. In fact, some large applications actually need their own dedicated servers to function properly. While this works, it's inefficient. Then there's the fact that servers take up physical space and generate lots of heat, thereby driving up energy costs.

"Server virtualization attempts to address both of these issues in one fell swoop," IT pro Jonathan Strickland explains. "By using specially designed software, an administrator can convert one physical server into multiple virtual machines. Each virtual server acts like a unique physical device, capable of running its own operating system."

2. Paperless Offices The second big trend in virtualization is the paperless office. Every business wants to discuss ways in which they can reduce their dependence on paper and pursue more efficient, virtual processes. We're already seeing a huge movement away from paper products and towards virtual storage systems.

While paper will never become obsolete in the workplace, we're getting to a point where it's less needed than in the past. Many companies are even using software like Perceptive Content in order to digitally manage documents and cut down on paper dependency. As long as the right implementation process is followed, this tends to work pretty well.

3. BYOD Policies Another popular, yet less obvious trend in virtualization is that of BYOD (bring your own device) implementation. As more and more IT departments around the country implement BYOD policies, there's less of a dependence on company owned and managed devices. This essentially leads to greater virtualization and fewer related issues.

4. Cloud Technology Finally, it's impossible to study the surge in business-side virtualization without acknowledging the rise in cloud technology; specifically, as it pertains to cloud-based software programs. From email marketing tools like MailChimp and Campaigner to marketing solutions like Sprout Social and Hootsuite, everything is on the cloud. No longer do businesses have to use on-premise solutions that take up server space and require significant IT resources to manage. Now, almost every new business solution is deployed through the cloud.

Comparing the Costs and Benefits Clearly, virtualization is on the rise. But, as any critical thinker understands, there are both costs and benefits associated with adopting new technologies and processes. Do these costs outweigh the benefits? Or is it still worth the investment?

1. Expect Direct Energy Savings For companies that choose to invest in server virtualization, there are substantial energy savings. As Doug Renner, CEO at Peak IP Solutions, explains to his clients, "You'll typically see cost savings in the area of 50 percent of hardware, power, and cooling." For some businesses, this can total thousands of dollars per month in savings.

2. Be Cognizant of Performance If you aren't careful, the energy savings associated with server virtualization can come back to bite you. Because virtualization is designed to be flexible and accommodate a number of applications, it's sometimes what ITProPortal describes as "jack of all trades, but master of none."

"As a result, hardware will be designed to give the best possible performance across a broad range of the most frequently used applications," ITProPortal explains. "But this will mean that it won't be able to deliver best-in-class performance for any given application compared to hardware that was designed specifically with that task in mind."

3. Save On the Purchase of Supplies and Equipment When it comes to the paperless office and BYOD policies, one of the biggest benefits is the direct savings associated with a decreased dependence on office supplies and equipment.

Take paperless communication as an example. While there are costs associated with using cloud software to handle communication, this monthly service fee often pales in comparison to the cost of regularly purchasing office supplies - including ink and paper - that would otherwise be needed.

When you look at a BYOD policy, the savings can be enormous. When you take into account savings related to hardware, support, and service plans, the average employer can save roughly $3,217 per user per year. That's a huge savings that represents serious money when dozens or hundreds of employees are involved.

That's not to say there aren't costs associated with BYOD, though. Companies will generally see regulatory compliance fees, application security costs, back-end infrastructure expenses, policy development costs, and program management expenses rise. These costs can amount to a few hundred dollars per employee per year.

When it's all said and done, most BYOD policies end up saving the employer money over the long run. Sometimes it just takes some time for these savings to be realized.

Does It Make Sense for Your Business? Ultimately, it all comes down to the individual business. Trends suggest that you can expect to benefit from certain investments, but you'll have to do some in-depth analysis in order to accurately understand how much you stand to gain.

Instead of trying to determine whether or not virtualization is a good general business practice, you need to ask yourself one simple question: Does it make sense for my business? The benefits have to outweigh the costs in your situation; otherwise, you're bound to fall short.

The good news is that they almost always provide a solid, worthwhile return on investment.

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